Fri. Dec 1st, 2023

Bally’s (NYSE: BALY) insiders were busy buying up shares of the company ahead of a significant development in the world of Major League Baseball (MLB). The vote by MLB owners to allow the Oakland Athletics (A’s) to move to Las Vegas, where Bally’s operates the Tropicana, prompted high-ranking Bally’s executives to snatch up shares of the previously struggling stock.

The vote confirmed that the Tropicana venue on the Strip would be demolished to make way for a new MLB stadium, set to be ready for the 2028 season. Bally’s had acquired Tropicana’s non-real estate assets in 2021, and the move to demolish the venue provides the company with clarity on how to proceed with the property.

The positive development prompted Macquarie analyst Chad Beynon to write a report to clients, stating that it “provides clarity for BALY with regard to the plans for the Tropicana.” The analyst believes that the company can now assess various paths forward for the redevelopment of the property, including building a large resort or finding a partner, which could contribute to the company’s growth and deleveraging efforts.

Beynon also sees other Strip operators such as MGM Resorts International (NYSE: MGM) and Caesars Entertainment (NASDAQ: CZR) benefiting from the A’s move to Las Vegas. The analyst believes that the news represents an incremental catalyst for Las Vegas, which will bolster the entertainment draw of the city and benefit operators across the board.

The stock’s positive momentum and the clarity provided by the MLB vote are seen as significant drivers for Bally’s and other Strip operators, potentially contributing to the growth and development of the gaming industry in Las Vegas.

By admin

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